Exploratory Orientation, Business Model Innovation and New Venture Growth

Hao Zhang,Chan Lyu,Xinbo Sun

doi:10.3390/su10010056

Hao Zhang, Chan Lyu + Show 1 more

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https://doi.org/10.3390/su10010056

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Abstract

Why are some start-ups more successful than other companies? In view of this question, this paper deconstructs the growth mechanism of the present new Chinese ventures from the perspective of Internet entrepreneurship and points out that exploratory orientation and business model innovation play an important role in the new ventures growth process. Based on this, through the investigation of 210 start-ups in China, the research found that: (1) exploratory orientation is in a positive relationship with the growth of new ventures; (2) business model innovation plays a mediated role between exploratory orientation and new business growth; (3) Internet embeddedness is found as a moderator in the relationship between exploratory orientation and the growth of new ventures. This finding will not only help further deepen the new research in the new venture growth process but also help to further expand exploratory orientation, business model innovation and the important role of the Internet embeddedness in the growth of new ventures.

Highlights

In the fierce market competition, successful enterprises often have a wealth of resources and have the opportunity to continue to expand the scale, occupy market share
It can be seen from the table that the mean and standard deviation of the variables are within the acceptable range, from the Pearson correlation coefficient between variables, enterprise exploratory orientation and new venture growth (r = 0.255, p < 0.01) are significantly related, exploratory orientation and business model innovation (r = 0.594, p < 0.01) are significantly related, business model innovation and new business growth (r = 0.517, p < 0.01) are significantly related
This paper confirms that business model innovation plays a mediating role between exploratory orientation and new venture growth

Summary

Introduction

In the fierce market competition, successful enterprises often have a wealth of resources and have the opportunity to continue to expand the scale, occupy market share. When abortive enterprises are lacking for resources, they cannot effectively expand their scale, suffer loss of market share, and frequently die out. The growth of new ventures, the most obvious is the expansion of enterprise scale, the most important thing is the formation of sustainable competitive advantage [1]. In the early days of business, due to the shortage of resources, the uncertain environment, the new ventures are struggling for growth. Compared with the old enterprise, the new ventures naturally have a “new entry defects”. In the face of challenges from organization internal and external changes, the new ventures are more unresponsive and overwhelmed, which is the main reason for the high failure rate of new ventures

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